Markets slide for third day on political tension

12 August 2017

At the close trading in NY, the Dow Jones Industrial Average was down 204.69 points, or 0.9%, to 21,844.01, its biggest one-day fall since May 17.

Trump was responding to North Korea's claim it was completing plans to fire four intermediate-range missiles over Japan to land near the U.S. Pacific territory of Guam. The S&P hasn't moved more than 0.5 percent in one day since July and has fallen more than 1 percent only twice this year.

Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control.

"While it appears that Pyongyang's detailed strike plan against Guam has created a sour backdrop to trading, it's worth noting that US/North Korea tensions aren't having quite the same effect on the DAX and CAC", said Spreadex analyst Connor Campbell.

The influential financial stocks were among the biggest drags on the index, with Royal Bank of Canada down 1.5 percent to C$92.88, and Manulife Financial Corp falling 4.7 percent to C$24.43, its largest drop since early August previous year.

The Federal Reserve has promised to raise interest rates at just a gradual pace to avoid disrupting the recovery or the markets.

Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts.

Hong Kong shed more than one percent and Shanghai also closed lower, while Seoul shares continued their sell-off after slumping Wednesday, with the won again softening. On the Nasdaq, 1,462 issues rose and 1,227 fell.

The Dow fell more than 200 points, a almost 1% drop, and its biggest dip in three months. The Japanese markets were closed for a holiday.